Re: "There's more premium original content than consumers can even watch."
"If it's always been the case, broadly speaking, that only 3% of TV was worth watching,"
From my perspective, you're being very, very generous.
For my entire lifetime, I can count the number of must see shows on one hand, and still have a finger left over*, and probably another dozen shows, at best, that were worth wasting time on.
*And those were animation, AKA cartoons.
It's funny how so called 'Children's shows' actually aim at a higher mental level than crime dramas, sit-coms, 'reality' shows,and and other so called 'Adult fare.**
**You were expecting a joke about which finger, weren't you?